Egypt to float an additional stake of Eastern Co. on EGX

CAIRO – 6 September 2018: Egypt’s initial public offering program will start by floating an additional stake of Eastern Company shares on the Egyptian Exchange (EGX), which amounts to 4.5 percent of the company’s shares, Minister of Finance Mohamed Ma’it said.

Ma’it added that the government advisor of IPO program NI Capital chose EFG Hermes to be the advisor of the offering of the Eastern Company.

The minister expected the yields of the offering to reach LE 2 billion, noting that the timing of the offering will be determined in cooperation with EFG Hermes.

Chairman of the Egyptian Exchange (EGX) Mohamed Farid announced Wednesday during the Euromoney Conference that around five companies will be listed in the Egyptian stock market by the end of the year.

In 2016, Egypt announced the launch of the government’s IPO program to offer shares over three to five years in several state-owned companies in fields such as petroleum, services, chemicals and real estate.

The state’s IPO program comes in light of the economic reform program adopted by Egypt and is conducted under the supervision of the Ministry of Investment.

It targets to offer 15-30 percent stakes of some state-owned companies on the stock exchange (EGX), and to increase funding to Egyptian companies and maximize the benefit from state assets.

It will also serve as a main tool to attract local and foreign capital flows to Egypt.

In March 2018, Former Finance Minister Amr el-Garhy said that 23 state companies have been chosen for the first phase of the state IPO program, with total shares value of LE 80 billion.

Garhy clarified that the market value of the shares to be listed is worth LE 430 billion.